Management and Organizational Studies 2277A/B Chapter Notes - Chapter 3: Cash Flow Statement, Debit Card, Online Banking

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

When budgeting, first step is to create a personal cash flow statement: measures income and expenses. Main source of income for working people is their salary. Other sources of income consist of deposits in savings accounts, debt investments which may generate interest income, some stocks may generate income in the form of dividends (and maybe capital gains) Don"t have to document every single expenditure, but should track how most of your money is spent. Its easier to monitor your expenses through a debit card over a credit card to pay bills (track through online banking) If you use cash, it"s harder as you will have to keep receipts of everything to be able to track spending. You can create this statement yourself by recording how you received income over a time period, and how you used cash for expenses. To maximize wealth, you want to maximize income and minimize expenses.